Page 167 - CityofSouthlakeFY26AdoptedBudget

For FY 2026 through FY 2030, revenue projections incorporate the following factors:
• Inflationary impacts on purchasing power and operating costs.
• Slowing pace of new development as Southlake approaches build-out, which affects related fees and
taxes.
• Pass-through costs of utilities that influence service fee rates.

This disciplined forecasting approach helps ensure that financial plans are realistic, sustainable, and
aligned with the City’s long-term strategic priorities. For the period of FY 2026 to FY 2030, major
revenue growth rates were forecasted as follows:

Five Year Financial Forecast Revenue Assumptions - Multi-year Operating Plan
General Fund FY 2026 - FY 2030

FY 2026
Revenue Adopted FY 2027 FY 2028 FY 2029 FY 2030
Source Forecast Forecast Forecast Forecast
Budget

Ad Valorem
(Property Tax) 3% 1% 3% 1% 3%

Sales Tax 1.5% 2% 2% 2% 2.5%

Franchise Taxes 1.6% 2% 1.5% 1.5% 1.5%

Charges for 10% 1.5% 1.5% 1.5% 1.5%
Services

Permit Fees -8.1% 1% 1% 1% 1%

*growth rates compared to the FY 2025 estimate as of August 2025

FY 2026 City of Southlake | Budget Book 167